Justifications for the Harmonization of international accounting standards in light of changes in the Iraqi environment

Abstract

As a result of the technological developments that took place and the emergence of the phenomenon of economic globalization, which made the world a small village where borders and barriers have disappeared. There is a difference and diversity in accounting practices among the countries of the world. Each country seeks to adopt an accounting system that suits its needs and environmental conditions. In the effort to reduce differences and try to unify and coordinate international accounting by finding common standards governing the practical application.

This requires adopting the appropriate approach to the formulation of accounting standards. In this context, two approaches (legal approach and self- approach) can be adopted, under the legal approach in which international accounting standards are formulated by practitioners of accounting profession and professional organizations. Accounting system used in the practical application in Iraq in the consolidated accounting system and the Board of Accounting and Control Standards. The unified accounting system in the relevant local companies is based on the standardization of the rules, terms and definitions used in processing and proof of events Financial operations and financial reporting to enable them to compare and evaluate performance efficiency at the national level. However, the system is not useful in light of the changes, including the economic and political changes that have occurred in the Iraqi environment and is not consistent with the international accounting standards, which requires reconsidering the application and proposing appropriate alternatives that enhance the credibility and fairness of financial reports from the perspective of its users.